Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1887-12-08
THE MESSAGE.
President CleYeIand's Recon-.
mendatiOn to Congress.
HIS TALK ON THE TARIFF.
THE SURPLUS IN THE TREASURY
THE ONE SUBJECT.

He Holds Congress Responsible for the
Large Surplus, and Says That by Next
Forty Million Dollars in tio Treasury.
To the Congress of the United States:
I on are confronted st the threshold of
your legislative duties, with q condition Of
the National finances which imperatively
demands immediate and careful considera-
ton The amount Of money annually ex-
acted through the operation of present law,
from the industries and necessities Of the
people largely exceeds the SUNS necessary
to meet the expenses of the government.
When we consider that the theory of our
institutions guarantees to every citizen the
full enjoyment of the fruits of his industry
and enterprise, with only such deduction as
msy be his share towards the careful and
economical maintenance of the government
which protects him, it is plain that the ex-
ection of more than this is Indispensable ex-
tortion and culpable betrayal of Arneri-
can fairness and justice. This wrong in
ficted upon those who bear the burden of
National taxation, like other wrongs, null
tiplies brood of evil consequences.
The public treasury which should only
exist ss a conduit, conveying the peoples
tribute to its legitimate objects of expendi-
ture, becomes a boarding place for money
needlessly withdrawn from trade and the
peoples use, thus Gripping our National
energies, suspending our country's develop
ment, preventing investment in productive
enterprise, threatening financial disturb
ance, and inviting schemes OF public
plunder. This condition of our treasury is
not altogether new; and it has more than
once of late been submitted to the peoples
representatives in the congress, who alons
can apply remedy. And yet the situation
still continues, with aggravated incidents,
more than ever, presaging financial con-
vulsion and widespread disaster. Il will
not do to neglect this situation because its
dangers are not now palpably imminent
and apparent. They exist none the less
certainly, and await the unforeseen and un-
expected occasion when suddenly they will
be precipitated upon US.
On the 30th day of june 1885, the excess
Of revenues over public expenditures after
complying with the annual requirement OF
the sinking fund act, was SIT, S59. 735. 81;
during the year ended June 30, 1856 such
excess amounted to s49, AS, 20; and dur
ing the year ended June 50, 1887, it reached
the sum of S55, ,567, ,S49.5+
The annual contributions to the sinking
fund during the three years above specified
amounting in the aggregate to Sl3SO5S,-
3@U 81 and deducted from the surplus as
stated, were made by calling in for that
purpose outstanding three -psr-cent bonds
of the government. During the six months
prior to June 50, 1887, the surplus revenue
had grown so largely repeated accumula-
tons and it was feared the withdrawal of
tins great sum needed by the people would
so affect the business of tho country that
the sum OF so, S64 100 of such surplus was 3
applied to the payment of the principal and
interest of the three-per-cent bonds still
outstanding and which were then payable
at the option of the government. The pre-
carious condition Of financial affairs among
the people still needing relief, Immediately
after the 3Oth day Of June, 1887, the re-
mainder OF the three percent. bonds then
outstanding, amounting with principal and
interest to the sum of SIS, ST, ,5D3 were
called in and applied to the. sinking fund
contributions or the current fiscal year.
notwithstanding these operations of the
treasury department representatives of dis:
tress in business circles not only continued,
but increased, and absolute peril seemed at
hand In these circumstances the coltribu-
ton to the sinking fund for the current fis-,
cal year was at once completed by the ex-
renditure of s27, ,6S4, 2S3, So in the purchase
of government bonds, not yet dus,
bearing and 4 l-2 per cent interest,
the premium paid thereon averaging a5yut
"a per cent. for tho form3r, and
per cert for the latter. In addition
to this the interest accfuing during the CIR
he on -st ho,, .I,1
dcbselness of the government was % soma
extent anticipated, ard banks selected rs
Repositories OF public money were per-
IL tied to somewhat increase their de-
posts
While the sxpedient thus employed TO re-
leuse TO the people the money lying idle in
the treasury, served to avert immediate
danger, our surplus revenues have c5n-
tIaIoi to accumulate, the excess for the
present year amounting on the ut day Of
n c.mJer to S55, 25S, 70l 10, and estimated
to reach the sum Of s:l3 005, 900 on ths 3J5h
Of June next, at which date it is expected
that this SUN, aided TO prior accumula-
tions, will swell the surplus in the treasury
to SliG, ,0J0O 900 Tuere seems TO be no assur-
ancs that with such withdrawal from
use of the peoples circulating medium, our
business com nunity may not, in the near
future, be subjected 10 the same distress
wlicl was qGt5s assly produced from the
same cause, and waile tia functions of our
National treasury should be few and simple,
and while its best condition would be
rcachal, l 'i!evs, b. It's entire discoanec-
ton with private isin3ss interests vet
wh.a. lIy A pe-var,i, II OF its purposes. Il
ii.v ho.is la nay usel,Ssly subtracted from
the chann-ls Of IRA le there seems to BE-
reasoI for ;hs claim TIA: some legitimate
ma ; shouId De ievissd by the government
to restore i'll an emergency, without waste
or extravaganza, such money to its place
among the people
II such an emergency arises there now ex-
lists no clear and undoubted executive
power of relief. Heretofore the redem9-
ton of three percent bonds which wsre
payable at the option of the government,
has Afforded means for the disbursement
of the excess OF our revenues; but these
bonds have all b5en retired, and there are
no bonds outstanding the payment of which
we have the right to insist upon. The con-
tribution to the sinking fund.-, which fur
nishei the occasion for expenditure in the
purchase OF bonds has been already made
for the current year, so that there is no out
lee in that direction.
In the presont state of legislation the only
pretense of any existing executive power to
I6sLOIc, ~ LLiS 6iILo, uhl f'itII u OuI eul pu1
revenues to the people by its expenditure,
consists in the supposition that the secre-
tary of the treasury may enter the market
and purchase the bonds of the government
not yet due at a rate Of premium to be
agreed upon. Tne only provision of law
from which such a power could be derived
is found in an appropriation bill passed
number of years ago; and it is subject to
the suspicion that it was intended as tenn
porary and limited in its application instead
Of comforting a continuing discretion and
authority 10 condition ought to exist
which would justify the grant Of power to
single official, upon his judgment OF its
necessity, to withhold from or release to the
business of the people, in an unusual man
ner, money held in the treasury and thus
affect at his will the financial situation of
the country; and if it is deemed wise to
lodge in the secretary of tho Treasury the
authority in the present juncture to pur-
chase bonds, it should be plainly vested and
provided as far as possible with such checks
and Limitations as will define this officials
right and discretion and at the same time
!, IL,